Filing bankruptcy is a legal action available to people in difficult financial situations, such as foreclosure, wage garnishment, or other debts.
Bankruptcy law is governed by the bankruptcy code, a set of federal laws in the United States that govern bankruptcy proceedings. The code allows those filing to choose between Chapter 7 bankruptcy or Chapter 13 bankruptcy.
Once their case is filed, it will undergo the complex bankruptcy court process. Navigating this process can be difficult for the inexperienced, making the expert bankruptcy attorneys at Stone Rose Law crucial allies in bankruptcy cases.
If you’re struggling with huge debts, our Arizona Chapter 13 bankruptcy attorneys can help you. Call (480) 498-8998 now!
An Arizona Chapter 13 bankruptcy lets you reorganize and consolidate your debts into an affordable monthly payment plan, typically lasting three to five years. This is a wonderful option for those with regular incomes that cannot meet the creditor’s high payment demands. In some cases, a percentage of the debt will be discharged at the end of the plan.
What makes this different than working with a Debt Consolidation company? Creditors must accept payments that you can afford. If you cannot pay back all your debts with your current income and expenses, the remaining unpaid debts (with some exceptions) will be discharged at the end of your plan.
Bankruptcy also protects those in debt. You are protected from all legal action, such as garnishments and levies while making your Chapter 13 Plan payments. All the interest stops the day you file.
With debt consolidation, you are subject to all legal action. The interest, fees, and penalties will continue to accrue. The creditors do not have to accept your offer or payments.
Schedule a free consultation with an experienced attorney at Stone Rose Lae to discuss your options.
Absolutely not! Chapter 13 bankruptcy was established as an opportunity for those struggling financially to repay their debts without suffering long-term financial effects, such as property foreclosure, garnishment, or asset loss.
It is also an opportunity to start fresh with your credit. Your credit recovery begins immediately upon filing-there is no waiting until the end of the three to five years. In some cases, our clients qualify to purchase a home within two years of filing their case while the case is still pending. Your Chapter 13 bankruptcy can open doors closed due to bad credit.
After completing a bankruptcy payment plan, most receive debt relief and a fresh start.
However, this process is not for everyone. Chapter 13 bankruptcy is only for people with regular income who are eligible for bankruptcy discharge. To qualify for filing bankruptcy in bankruptcy court, you must:
Bankruptcy proceedings are not easy proceedings and may impact your credit report. However, the fresh start is worth it.
Upon filing for Chapter 13 bankruptcy, an automatic stay immediately protects the filer and their assets from any attempts of collection and all legal actions such as garnishment, lawsuits, foreclosures, and levies. If you have a pending foreclosure sale date or repossession, a Chapter 13 filing will stop the event and allow you more time to cure the default through your Chapter 13 plan.
Upon filing, creditors will receive notice of your Chapter 13 bankruptcy. They must prove you owe a valid debt and wait to be paid according to their type of debt.
However, the stay does not apply to some types of debts or financial obligations, such as child support payments. To learn more, consult with an Arizona Chapter 13 bankruptcy attorney at Stone Rose Law.
Chapter 13 does not erase every kind of debt. Instead, different types of debts will be treated differently.
Priority debts include child support, spousal support, and recent taxes, which are not dischargeable in bankruptcy and must be paid.
Secured debt is debt secured by an asset you wish to keep such as your car or home. Anyone filing for bankruptcy must pay short-term secured debts such as car loans or a second mortgage during the repayment plan. In some cases, this includes your monthly mortgage obligations.
Vehicles or homes that are subject to a lien or security interest are known as secured assets. Other types of secured debts, like judicial or tax liens, must also be paid during the repayment plan.
Unsecured debt is any debt not secured by an asset and isn’t either an administrative expense or a priority claim. Common examples of unsecured debts include credit card balances or medical bills. A debtor must pay unsecured creditors at least as much as they would get in a Chapter 7 liquidation bankruptcy. Our experienced bankruptcy attorneys will assess the liquidation value of your case.
Our skilled bankruptcy lawyers can help identify your debts and assist you in forming an achievable Chapter 13 plan.
Staying the course of the repayment plan is required to receive debt relief through a Chapter 13 bankruptcy proceeding. However, a skilled Chapter 13 bankruptcy Arizona lawyer can assist you in crafting a plan that works for your financial situation.
Debtors, the bankruptcy trustee, or an unsecured creditor can request a modification of the payment plan. An experienced bankruptcy lawyer can assist you in accomplishing this modification if necessary.
Yes, you can file without your spouse if their assets and income are disclosed. Arizona is a community property state where all income and assets held by the household must be disclosed. Your spouse will not be a party to the bankruptcy, and although their credit will not be impacted, it will be noted.
To qualify for Chapter 13 bankruptcy, at least one partner must be eligible for Chapter 13 bankruptcy relief and the combined debts of both spouses do not exceed the debt limits.
The cost of a given Chapter 13 bankruptcy case will vary, but an Arizona Chapter 13 attorney at Stone Rose Law can provide a free consultation. With our support, you can rest assured that you will receive the optimal plan from your Chapter 13 bankruptcy.
Our firm has a Phoenix, Arizona Chapter 13 bankruptcy lawyer ready to help you navigate Chapter 13 bankruptcy law, make a repayment plan, & give you a fresh financial start.
Contact our team today for your free bankruptcy consultation at (480) 498-8998. Or, if you prefer, you can reach us online.
